News

Sonic Q2 hits a profit

March 22, 2011

Sonic Corp. reported results for the second quarter of its fiscal 2011 ended Feb. 28, which included a year-over-year 1.2 percent increase for systemwide same-store sales. This is compared to Q2 '10, when same-store sales were down 13.2 percent.

Other highlights included a $0.07 net income per diluted share increase, versus a net loss per diluted share of $0.01 in the year-earlier quarter.

Same-store sales at franchised drive-ins increased 1 percent in Q2 '10, while same-store sales at company-owned drive-ins increased 2.2 percent.

There were five franchise drive-in openings in the quarter.

"Sales momentum continued to build in the second quarter, highlighted by positive same-store sales," said Clifford Hudson, chairman and CEO. "This rebound in same-store sales underscores the ongoing positive impact of our strategic initiatives and a modestly strengthening economy. As one of the most highly differentiated brands in the quick-service restaurant industry, we have placed renewed emphasis on high-quality products and personalized customer service."

Hudson noted that not only is the system experiencing improved sales, progress has been especially apparent in company-owned drive-ins as their same-store sales have outperformed the system for three consecutive quarters. This performance reflects improved customer service, as well as the impact of new management added in the fall of 2009. 

"It is nice to see this increasing momentum in our business for the second quarter, and we expect to see continued improvement throughout fiscal 2011," Hudson said. "We are especially pleased with the recent launch of our new line-up of 6-inch premium beef hot dogs, which complements our popular Coney offering and adds depth and variety to our hot dog category. These new differentiated products deliver value the Sonic way and have the potential of driving traffic or check in various day parts."